3 6 Ke·2024-03-30 02:14Core Viewpoint - China Resources Beer reported a 10.4% year-on-year increase in total revenue for 2023, reaching 38.932 billion yuan, while net profit attributable to shareholders rose by 18.6% to 5.153 billion yuan, despite facing challenges in overall beer sales growth and issues with its subsidiary, Jinsha Liquor [1][2][4]. Group 1: Beer Business Performance - The beer sales volume for China Resources Beer in 2023 reached 11.151 million kiloliters, showing a modest growth of 0.5%, primarily driven by product premiumization and a decrease in packaging costs [2][4]. - The high-end Heineken brand saw a nearly 60% increase in sales volume, making China the second-largest market for Heineken globally [4]. - The gross profit margin for the beer business improved by 1.7 percentage points to 40.2%, benefiting from increased sales and reduced costs [4]. Group 2: Market Challenges - Despite positive indicators, the overall beer sales growth of 0.5% was deemed unsatisfactory by the chairman, who noted a decline in sales volume in the second half of 2023, with a 4.6% year-on-year drop to 4.58 million tons [2][4]. - The chairman acknowledged a trend of strong performance in the first quarter, followed by pressure in the second quarter, and a decline in the third and fourth quarters, indicating a challenging consumption environment [2][4]. Group 3: High-End Market Dynamics - The high-end beer market remains competitive, with China Resources Beer aiming to expand its high-end product offerings without engaging in price wars [5][7]. - The company anticipates that the high-end beer market in China will continue to grow, with expectations for significant increases in high-end beer sales over the next decade [5][7]. - Competitors like Budweiser APAC are also experiencing growth in high-end and super high-end products, indicating a robust market for premium beers [7]. Group 4: Jinsha Liquor Performance - Jinsha Liquor's performance has been less favorable, with revenue and net profit not returning to pre-acquisition levels, generating only 1.3 million yuan in profit for 2023 [9][12]. - The company is implementing a three-year plan to improve Jinsha Liquor's brand, channel, and market management, with a focus on product quality and sales growth [12]. - Despite challenges, Jinsha Liquor has shown signs of recovery, with sales in the second half of 2023 increasing by nearly 70% compared to the previous year [12].